Should You Rebalance Your Portfolio?

A term you have likely heard tossed around in the financial services world is ‘rebalancing’. Economist John Maynard Keynes said, “The market can remain irrational longer than you can remain solvent.” With this major concern in the background, let’s define rebalancing as the action which brings something back into balance. What is Rebalancing? To keep the concept simple, let’s assume we have a portfolio consisting of 2 assets. We will call them ‘Stocks’ & ‘Bonds.’ To further simplify the concept, we will assume an equal investment into these two positions. I would often describe this portfolio as a 50/50 portfolio. Over time, one position of the portfolio could become greater… Read More

Continue Reading